Marketing Function in FMCG Environment Brand Building The Role of Marketing in FMCG Environment The FMCG market is particularly competitive Category Leadership Greater Profitability Higher Investment Growth The Role of Marketing in FMCG Environment The KEY decision outputs recorded are: Market definition / segmentation Category/Brand vision Category drivers of value Business goals Brand/portfolio roles Strategic actions Detailed strategies / capabilities Targets / measures What we will not do Team behaviour / culture Key risks Where we will compete, where not and why Our future intention of what we will be Where our growth will come from Our business target, growth, share or margin Positioning, roles and strategy for the total brand portfolio (global and key regional / local brands) The main strategic actions / objectives / by channel or global strategic Customer How we will win, through specific actions and developing capability: innovation, communication, HR, resource priorities, etc. Metrics and milestones to track progress Must-stops and don’t starts How we will act as a team, our category culture What might destroy our plans Developing a Marketing Strategy for FMCG Case Study: How familiar are you with the Unilever 6P‟s Model? Market dynamics & financial returns Profit Turnover Value market size Price Market growth Volume Volume market size Value share Volume share Buying behaviour Loyalty Penetration 6P's (brand levers) Share of purchase Place Proposition Promotion • Distribution • Visibility • Number of lines • Share of staff • Consumer attitude • Brand health • 360º comms • Brand investment • ROI • Competitor activity • ROI • Depth of discount • Number of promotions • Compliance • Competitor activity Average pack size Pack • On shelf impact • Variant diff’tiation • Perceived quality • Competitor impact Purchase frequency Price Product • Price elasticity • Competitor pricing • Value pricing • Performance vs. claims • Performance vs. competition Completed 6Ps Detective Worksheet for „Magnum‟ case study Surface Issue Magnum core variants losing share of multipacks market Volume in market Market Dynamics & Financials Buying Behaviour • Magnum volume down • Market volume growing • Magnum value down • Dilution of category profitability Who? What? ‘Savvy seekers’ segment Place 6P Brand Levers Root Issue Value in market • 65% distribution • Switching to competitor Choc Snack brands Proposition Promotion • 90% aided • Losing awareness promotional • Falling slots to Conviction Cadbury score benefit? Price in market Internal financials • Magnum at ‘Every Day Low Price’ • Magnum price 25% below Choc Snack segment price ceiling • Margin hit if extra heavy promotions appear When? Where? • Switching driven by competitor promotional activity Place • No issues • All grocery retail, especially Tesco & Asda Price Product • Price not in line with premium positioning in the market • Superior chocolate quality in blind tasting Declining loyalty to Magnum amongst Savvy Seeker group due to stronger competitor promotional activity and perceived lack of Magnum unique benefits WHY? Category/Brand Stewardship: Cif – significant media investment Redefine cream segment and our leadership Enter and own new specialist segments Continue building premium/trigger segment Brand Development Brand Building Customer Marketing Interrelations between Departments/Functions Brief for a “Home Task” Select any of Unilever active brands and produce a Marketing Plan for a New product (e.g. new Tea or new Deodorant) Contents of Marketing Plan can be found in Handouts; Award: - possibility to win a “SHADOW DAY” within Unilever Marketing; - possibility to get an Internship in Unilever Marketing; Deadline: June, 1st E-mail to: jevgenija.glazunova@unilever.com Thank You and Welcome to Unilever! Are You A Brand Detective?